Hold Congress Accountable

Knowledge is power. It makes sure people understand what is happening to their country, and how they can make a difference. FreedomWorks University will give you the tools to understand economics, the workings of government, the history of the American legal system, and the most important debates facing our nation today. Enroll in FreedomWorks University today!

Search FreedomWorks

Resources

Blog

Germany Taking the Path Less-Traveled

It looks as if President Obama and Congress could take a few economics lessons from Chancellor Angela Merkel. While the US is going to try to spend her way out of the financial crisis by putting more taxes on the American people to finance the stimulus package, Chancellor Merkel has opted for the path less-traveled—the more laissez-faire path that is. Although hardly a perfect model (Germany did spend billions of euros to bail out her banks), Chancellor Merkel is not going to implement higher taxes in an attempt to fix the economy. With elections on the horizon and a projection of a 6% drop in GDP, the Chancellor is getting serious about making economic growth her priority.

"Germany needs to move quickly out of the crisis," Merkel said. "To do that we need tax breaks, not hikes." [Business Week]

Since Germany is Europe’s largest economy, this move by Chancellor Merkel could set a great example. And definitely one that Congress should take note of.

The problem of the national debt can seem overwhelming. How do you address $16.4 trillion in gross debt, or even $11.5 trillion in debt held by the public? Congress is gridlocked, President Obama doesn't want to deal with it, and the Congressional Budget Office estimates that we will spend $3.554 trillion this fiscal year, thereby adding another $641 billion to the debt. Caught in such a difficult situation, the problem appears insurmountable.